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How to Invest After the Election: Stock Pickers

Tuesday, 2 Nov 2010 | 4:26 PM ET

How should investors position their portfolios post-election? David Dietze, president and chief investment strategist at Point View Financial Services, and Michael Cuggino, president and portfolio manager at Permanent Portfolio Funds, shared their insights.

“There’s a significant shift and quantitative easing priced in, regardless of what happens,” Dietze told CNBC.

Investing Post Election
Insight on where investors should place their bets post-election, with Michael Cuggino, Permanent Portfolio Funds; David Dietze, Strategist Point View Financial Services and CNBC's Kate Kelly.

“We could have a little bit of ‘buy the rumor, sell the news’ after this and investors have to remember that the problems we have now, we’re still going to have tomorrow.”

Cuggino said he prefers to stay diversified, because of the uncertainty in the markets.

“Our view is that the U.S. market still looks attractive, although not as cheap as it was,” he explained. “We still like goldfor the long-term, given the monetary environment that’s out there, and we still have a little bit in bondsas well, in the event that economic recovery remains sluggish.”

In the meantime, Dietze said a lot of upside has already been priced into the market.

“If you look back, people were bracing for what was supposed to be the two worst months of the year,” he noted. “Now, we’ve had tremendous returns in September and October. And according to the AAIA (American Association of Investment Advisors), the number of bulls out there is highest since early 2007 and number of bears is at the lowest in 3 years—so I think there’s going to be a bit of sell on the news here, and I would be cautious.”

Dietze said he is especially cautious on fixed income as the amount of Fed easing may depreciate the value of the currency. Instead, he advised investors to look into the energy space.

“The dividends are good on stocks such as ExxonMobil , Chevron and ConocoPhillips ,” he said.

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Dietze Likes:

Bank of America

Chevron

Hewlett-Packard

Cuggino Likes:

Gold COMEX (check futures prices here)

FedEx

Illinois Tool

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Scorecard—What They Said:

  • Cuggino's Previous Appearance on CNBC (Sept. 30, 2010)
  • Dietze's Previous Appearance on CNBC (Oct. 18, 2010)

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More Market Opinions:

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CNBC Data Pages:

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CNBC Slideshows:

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Disclosures:

No immediate information was available for Cuggino or Dietze.

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Disclaimer

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